EDMUNDS Just Put the Entire Auto Industry On ALERT | Episode 1045

“Per year” and “per mile” depreciation break down value loss by time and usage. Mileage-based depreciation is especially useful for used cars because two vehicles of the same age can have very different wear and value.

Cross-shopping means comparing multiple vehicles side-by-side using consistent metrics (price, value scores, depreciation, etc.). The goal is to identify which option offers the best value rather than focusing on just one listing.

Edmunds is an automotive pricing and research company that publishes market data used by consumers and dealers. In this segment, the hosts cite Edmunds data to support claims about loan terms, down payments, and affordability.

Negative equity happens when you owe more on your current car loan than the car is worth (often due to depreciation). The segment explains that when trading in, buyers may “roll over” that negative equity into the new loan, increasing the amount financed.

This metric measures how many financed new-car purchases have very high monthly payments (at or above $1,000). The segment uses it to show affordability stress is worsening, with the share rising to 20% of financed vehicles.

The discussion is about how people finance car purchases with loans. Loan size and interest rates determine the monthly payment, which strongly affects affordability.

Automobile insurance is the policy cost that protects you financially in crashes, theft, and other losses. Insurance premiums can vary widely by driver, location, and vehicle.

“84 months” is a common long-term auto loan length—7 years. Longer terms generally lower the monthly payment but increase the total interest cost and can increase the risk of being upside down on the loan if the car’s value drops.

“84 plus month car notes” means auto loans with terms of 84 months or longer. The episode frames this as a sign of affordability pressure, since very long terms can dramatically increase total interest paid.

Principal is the original loan amount borrowed (separate from interest). The episode explains that putting down less money increases the principal you’re financing, which then increases the interest you pay.

Interest rates determine how expensive borrowing money is. In auto lending, higher rates raise the APR on car loans, which increases monthly payments and total interest paid over the life of the loan.

Progressive is a major U.S. insurance company. In the segment, they’re referenced as offering a tool to help estimate and potentially lower an insurance bill.

Toyota is a global automaker and one of the largest sellers in the U.S. The episode uses Toyota’s year-over-year sales decline to illustrate that even traditionally strong brands are feeling pressure.

GM (General Motors) is one of the major U.S. automakers, and its sales trends are often used as a barometer for broader demand. When the segment lists GM alongside other brands, it’s highlighting how widespread the downturn is.

“Year over year” compares performance in the same month across two different years (e.g., March this year vs. March last year). It’s a common way to judge whether sales are truly improving or just benefiting from one-time timing effects.

Tariffs are taxes imposed on imported goods, and in auto markets they can raise vehicle and parts costs. The segment suggests some buyers pulled purchases forward to avoid higher prices, which can temporarily boost sales before the tariff impact hits.

Manufacturer incentives are discounts or financing offers (like cash rebates or low-rate loans) used to stimulate demand. Incentives can change month to month and strongly influence transaction prices and sales volumes.

“Unsold new cars” refers to vehicles sitting in inventory that haven’t been purchased by consumers yet. In auto markets, unsold inventory often leads to increased incentives, promotions, or pricing adjustments to move cars.

The Great Recession (2007–2009) was a major economic downturn that sharply reduced consumer spending, including on big-ticket items like cars. The episode uses it as a reference point for how automakers respond with incentives during demand shocks.

Acura is Honda’s luxury brand, and the speaker references working at an Acura store during the Great Recession era. The anecdote is used to illustrate how incentives and dealer offers may or may not be enough to overcome consumer hesitation.

Mazda is mentioned with year-over-year sales declines, suggesting the brand is struggling relative to prior periods. The point is to show that even brands known for affordable options can be hit hard when consumer confidence drops.

Nissan is mentioned with a year-over-year sales decline, including a specific group-level drop. The speaker frames Nissan as a brand with affordable options, making the weakness notable.

The Ram 1500 is a full-size pickup truck, and it’s central to the episode’s sales discussion. The hosts are using “Ram 1500 leftovers” and inventory counts to argue that pricing and availability are driving sales momentum.

Jeep is a Stellantis-owned brand known for SUVs and trucks, and it’s often discussed in terms of pricing strategy and sales momentum. In this segment, Jeep’s “up market too quickly” is framed as a reason for a multi-year sales decline.

VW refers to Volkswagen, which sells vehicles in the U.S. under both VW and Audi brands. The host suggests Volkswagen’s numbers will look worse once Audi and VW data are fully in.

Audi is Volkswagen Group’s premium brand, and it’s mentioned here in the context of slow-selling vehicles in the U.S. The host expects Audi’s sales to decline further year-over-year once the data is finalized.

“Month over month” (MoM) compares a metric to the previous month. The host notes the average advertised asking price increased by roughly $750 MoM, reinforcing the idea that pricing pressure is ongoing.

CarEdge.com is the car-buying service being promoted in the episode. The host describes it as handling research, dealer outreach, and negotiations, plus a live negotiation feature.

“Dealer outreach” is the process of contacting multiple dealerships to request quotes and availability. In a negotiation context, it’s how buyers (or a service) generate competing offers.

The Toyota Camry is a mainstream midsize sedan and one of the most common “new car” benchmarks for pricing discussions. Because it’s widely sold, small differences in discounting, dealer fees, and incentives can translate into noticeable out-the-door savings.